Meta stock soars despite mixed earnings result

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Facebook genitor Meta's banal is soaring aft the institution reported first-quarter profits and regular idiosyncratic counts that bushed Wall Street's expectations. Shares were up sharply successful after-hours trading, going up arsenic overmuch arsenic 15% supra their closing price.

That's contempt the company's slowest gross maturation since going nationalist a decennary ago.

Meta earned $7.47 cardinal successful the January-March period, down 21% from $9.5 cardinal during the aforesaid play a twelvemonth earlier.

Revenue roseate 7% to $27.91 cardinal — the slowest maturation complaint successful a decennary for the online advertizing powerhouse that mostly reports income maturation successful the treble digits. Russia's warfare successful Ukraine was a deed to revenue, CEO Mark Zuckerberg said.

"We've been blocked successful Russia, and we decided to halt accepting ads from Russian advertisers globally," Zuckerberg told investors connected a telephone Wednesday. 

Reversing a atrocious quarter

Meta's results, portion mixed, people a turnaround from the past 3 months of 2021, erstwhile Facebook reported a driblet successful users and projected spending up to $10 cardinal successful 1 twelvemonth to physique retired metaverse-related technology.

In March 2022, Facebook had 1.96 cardinal regular progressive users connected average, an summation of 4% year-over-year. That served to reassure investors that past year's diminution was a blip, alternatively than a motion of things to come.

The institution spent $2.9 cardinal that 4th connected Reality Labs. That inclination should continue, arsenic Zuckerberg told investors helium expects gross from the company's societal apps to money VR improvement for the metaverse for the adjacent fewer years.

"I admit it's costly to physique this — it's thing that's ne'er been built earlier and it's a caller paradigm for computing and societal connection," helium said.

Tech giants person mixed results

Meta chopped a crisp opposition with Google genitor Alphabet, which connected Monday reported disappointing earnings, with nett beneath Wall Street's expectations. Google besides reported a gross maturation slowdown, but for Meta this appeared to person been mitigated by an summation successful regular progressive users that "was capable to nonstop the shorts covering and the banal surging," said Jesse Cohen, elder expert astatine

"That being said, it was a mixed study wide arsenic the societal media elephantine continues to conflict with slowing gross maturation amid reduced advertisement spending amid the existent inflationary environment," Cohen said.

Recent privacy changes by Apple person made it harder for companies similar Meta to way radical for advertizing purposes, which besides puts unit connected the company's revenue. For months now, Meta has been informing investors that its gross can't proceed to turn astatine the aforesaid breakneck gait they are accustomed to, truthful it's apt that the quarter's single-digit gross maturation was already baked into capitalist expectations.

Shares of the Menlo Park, California-based institution roseate $27.12, oregon 15.5%, to $202.07 successful after-hours trading.

The banal has taken a deed this period amid quality of Elon Musk's Twitter buyout and ended regular trading astatine $174.95 — down 48% since the opening of the year.

CBS News' Musadiq Bidar and Irina Ivanova contributed reporting.

In: Facebook Meta